It was never an ideal situation for retirees. The low-interest-rate environment meant that retirees earned next to nothing on their fixed-income investments. But now, yields on long-term bonds are rising. So, how might retirees who were hoping to live off interest income and dividends rejigger their portfolios now?
► Review your investment policy statement. If you have an investment policy statement or IPS, now would be a good time to review it. If you don’t have one, now would be a good time to create one.
The statement spells out how much you should invest in stocks and bonds based on your time horizon, risk tolerance and investment objective. It also spells out when you will make changes to your asset allocation. So, unless your investment policy statement is telling you to make changes to your portfolio, sit tight. Read more…..
Chart of the Day
There are a couple of key tips that you need to know when buying dividend stocks and growing your portfolio to do well over the long-term. We’ll go over these tips in detail. Also included is some quality dividend stocks to start with.